New York, NY, January 20--Martha Stewart Living Omnimedia is closing its money-losing online store and catalog in February, according to a notice posted on the company's Web site.
The business was not profitable and was not on track to become profitable, leading to the decision to discontinue it in the fourth quarter, the company said.
For the quarter ended Sept. 30, the division's operating loss widened to $2.7 million from $2 million a year earlier, as sales fell more than 6 percent to $6.2 million from $6.6 million.
For the first nine months, the loss narrowed to $7.8 million from $14.8 million, as revenue dropped more than 15 percent to $18.2 million from $21.4 million in the year-ago period.
The notice on the Web site, which advertises a final tag sale with discounts of as much as 70 percent, said Martha Stewart Living's online flower shop will remain in business.
The Martha Stewart Everyday collection will still be available online at Kmart's Web site, the company said.
